Understanding Wants&needs
What is a need
something that is essential for survival
Is water a want or a need
want
What is a budget
a plan on how to use money
Is it smart to spend all your birthday money right away?
No
Your friend buys candy every day, but you save your money. Who is using better judgment?
You ( if saving for needs/goals)
What is a want
Something that you desire but don't need to survive
Is a trip to the movies a want or a need
want
In budgeting, what should come first: wants or needs?
Needs
What's one way to control spending on wants
Make a budget, use a list, set limits
Is saving money a need or a want?
its a need
Is the internet a want or a need?
it can be both
a winter coat in alaska: want or need?
need
You have $10. A snack is $3, and your bus ride is $2. Can you afford a $6 toy
No
You want new sneakers but also need school supplies. What should come first?
school supplies ( need)
You have to choose between eating lunch or buying a toy. What do you pick?
Lunch
How can the same item be a want for one person and a need for the other?
Based on personal circumstances
your given $100. Make a list with two needs and two wants you would buy
If your monthly income is $500, and your needs are $350, what percentage is left for wants?
30% or $150
How can advertising trick you into thinking a want is a need
it creates a emotional urgency or shows the item as essential
You want a bike, but your family needs groceries. What's the responsible decision and why
buy groceries (needs come first)
Name three things that are often mistaken as needs but are wants.
designer clothes, new phone, video games.
Rank the following in importance: Cell phone, food. rent, video games
needs: Food, Rent, phone
wants: games
Why is it dangerous to spend all your money on wants
You may not be able to cover needs in emergencies or unexpected events
You see a phone on sale for 50% off, but you don't need it. Should you buy it? Why or why not
No- even discounted wants still cost money you may need elsewhere
You earn $20/week. Rent is $5, food is $5, and a concert is $12. You also want a hoodie for $25 What's your plan
postpone wants, save weekly, or skip concert (prioritize needs and savings)